2 Chinese cos hit roadblock with Indian investments

Big-ticket investment plans of two Chinese firms appear to have hit the Great Wall of India`s home ministry over apparent security concerns. Shanghai Fosun Pharmaceutical (Group) Co`s $1.4-billion deal struck about six months ago to acquire 86% stake in Hyderabad`s Gland Pharma Limited is yet to fructify, as is the Bank of China`s move announced in 2015 to open its first branch in India. The ministry is yet to give its assent in both cases, according to people aware of the matter, triggering concerns that this may deter potential investors who had expressed interest in the country as part of Chinese President Xi Jinping`s announcement in 2014 to invest $20 billion in India in five yearsFosun Pharma`s proposal, marking the first billiondollar takeover of an Indian company by a Chinese firm, is among the biggest Chinese investments in India, that too in a sector which does not pose any security concerns. Yet, the ministry of home affairs is not clearing the Chinese company`s investment proposal. In the case of Bank of China, the ministry is not granting permission due to the roadblocks that the State Bank of India is facing in China. The refusal to give permission to Bank of China to open its India chapter beats all logic.